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State Energy Efficiency Policy Database

South Dakota

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Summary

South Dakota’s utilities have been implementing ratepayer funded energy efficiency programs since the mid-2000s, however the levels of efficiency program spending and associated energy savings have been lower than the national average and have not increased significantly. Only one utility does not currently have a program in place but it is currently requesting permission from the Commission to do so. In addition, South Dakota instituted an electric utility performance incentive program. In 2010 the South Dakota Public Utilities Commission authorized a lost revenue adjustment mechanism for Northwestern Energy for both gas and electric efficiency programs. 

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables on the left.

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November 8, 2013


Customer Energy Efficiency Programs

South Dakota's utilities run limited energy efficiency programs. Several utilities offer commercial and residential rebate programs, and Otter Tail Power also runs a financing program for commercial and residential customers.

The South Dakota Energy Smart Initiative brings together utility partners to pledge their support of improving energy efficiency in South Dakota. Partners include both investor-owned and publicly owned utilities, which report numerous plans and new efforts to offer energy efficiency programs and services to their customers. 

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables on the left.

Links:

Top of Page

November 8, 2013


Energy Efficiency Resource Standards

There is currently no EERS in place.  

For more information on Energy Efficiency Resource Standards, click here.


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August 9, 2013


Alternative Business Models

In 2010 the South Dakota Public Utilities Commission authorized a lost revenue adjustment mechanism for Northwestern Energy for both gas and electric efficiency programs (GE09-001). The mechanism will take into account two calculations: The actual DSM program costs incurred, and the calculated lost revenues based on reported DSM savings for the 2010 start-up period; and a forecast of DSM program costs and lost revenues that are developed for January through December 2011. Any over/under collection for the first year (including interest), plus forecasted DSM program costs and lost revenues for the second year are added together to compute rates for the second year.


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August 9, 2013


Reward Structures for Successful Energy Efficiency Programs

South Dakota has approved performance incentives through various mechanisms. In 2008, OtterTail Power received approval for its energy efficiency programs, with a flat-rate bonus if the utility met its efficiency goals. In 2009, the Commission approved a similar mechanism for MidAmerican Energy. In 2010, MidAmerican’s incentive was amended to a straight return based on a percentage of the program budget. Montana-Dakota Utilities and Northwestern Energy have similar approved mechanisms. Black Hills Power and Xcel Energy have similar mechanisms.


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August 21, 2013


Energy Efficiency as a Resource

South Dakota has an integrated resource planning (IRP) rule and filing requirement.  There is currently no policy in place that treats energy efficiency as a resource. 

For more information on energy efficiency as a resource, click here.


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August 8, 2013


Evaluation, Measurement & Verification
  • Cost-effectiveness test(s) used: TRC, RIM
  • Uses a deemed savings database: no

The evaluation of ratepayer-funded energy efficiency programs in South Dakota relies on both regulatory orders and legislative mandates. Evaluations are mainly administered by the utilities. There are no specific legal requirements for these evaluations in South Dakota. South Dakota uses two of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC) and Ratepayer Impact Measure (RIM) test. South Dakota specifies the TRC to be its primary test for decision making. The benefit-cost tests are required for total program, customer project, and individual measure level screening, with some exceptions for low-income programs, pilots, and new technologies. No rules for benefit-cost tests are specified. 


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August 20, 2013